The 2007 Farm Bill Debate Converging Domestic and International Policy Imperatives

1. The 2007 Farm Bill DebateConverging Domestic and International Policy Imperatives Policy Imperatives to Support Environment and Conservation

2. Policy Imperatives • Enhance environmental performance of the conservation title. • Resource conservation versus environmental management. • Critical mass and technical services. • “Green” the commodity title. • Minimize perverse incentives. • Strengthen conservation compliance provisions. • Transform commodity production subsidies into incentives environmental stewardship—”Green Payments.” • Find common ground among competing agendas.

3. A New Mission • Resource conservation, 1935 to 1985. • Enhance productivity of agriculture. • Sustain the resource base agriculture depends on. • Environmental management, 1985… • Soil, water, & air quality. • Fish and wildlife habitat. • Ecological goods and services.

4. A New Mission • Think about wetlands: • Up to 1970s we paid farmers to drain wetlands. • 1985 we deny farm subsidies if a farmer drains wetlands. • 1990 pay farmers to restore wetlands (WRP). • Think about program names and funding: • AGRICULTURAL CONSERVATION Program: 1995-$70 million. • ENVIRONMENTAL QUALITY Incentives Program: 2005-$1 billion. • 15 fold increase in funding.

5. Conservation Title Reform Agenda • Problems needing fixing: • Practices out of date and unsuited for environmental management. • Cost-share model doesn’t work well for management and information intensive practices. • Cost-share model doesn’t work well when most benefits are off-farm. • Paying for practices is a weak link to environmental performance. • Targeting is weak. • “Bad actors” get more than “good actors” creating perverse incentives.

6. Commodity Title Reform Agenda • Problems needing fixing: • Minority of agriculture benefits (producers of 8 commodities; 20% of agricultural sales). • Minority of subsidized producers benefit; incentive for consolidation and specialization. • Minimal or negative effect on rural communities. • Negative effect on developing world agriculture. • Environmental implications: • Encourage intensification of production. • Encourage production environmentally risky behavior.

7. Seeking Common GroundCompeting but Compatible Agendas? • A better way to support environmental stewardship and resource conservation. • A better way to support farmers, ranchers, and rural communities. • A better way to preserve the status quo.

8. Seeking Common GroundPay for Performance • Pay for value of environmental goods and services, not for cost of producing those goods and services—ecological value of riparian buffer versus per acre land rent. • Pay for performance rather than practices—ton of carbon sequestered or pollution prevented versus cost of practice installation.

9. Seeking Common GroundBalance Land Management and Land Retirement

10. Seeking Common GroundManage Programs as a Balanced Portfolio

11. Seeking Common GroundStrengthen Technical Services Infrastructure • Limitations of technical and human infrastructure are and will limit policy innovation. • Technical and human resource infrastructure is inadequate—must be built to plan, implement, and manage modern conservation and environmental management systems. • Need Blueprint—coordinated investment plan—to build infrastructure suitable for environmental management.

12. Seeking Common GroundMuch to Be Gained • For producers—environmental performance a growing determinant of commercial viability. • For taxpayers—a greater return on their substantial investment in U.S. agriculture. • For the environment—historic opportunity to enhance environmental quality and ecological function. • For policymakers—a way out of vexing dilemmas.

13. The Soil and Water Conservation Society (SWCS) is a nonprofit scientific and educational organizationfounded in 1943that serves as an advocate for professional resource conservationists and environmental managers and for science-based conservation and environmental practice, programs, and policy. SWCS has over 7,000 members around the world. Our mission is to foster the science and art of natural resource conservation and environmental management on working landthe land used to produce food, fiber, and other services that improve the quality of life people experience in rural and urban communities. We pursue our mission through a combination of research, education, and advocacy. You can learn more about SWCS and our projects by visiting our website: www.swcs.org